Continental: how to structure German law high-yield
Elizabeth Fournier |
July 23, 2010
The first secured high-yield bond to be sold under the new German Bond Act has some innovative features, including the first trustee-like service. But it still had to be structured around gaps in the legislation.
Continental’s €750 million senior secured notes were the first to be sold since changes to German bond legislation meant that it became possible to amend bond terms post-issuance.
“Traditionally it’s been almost impossible to issue high-yield under German law because the old law did not provide sufficient flexibility for amending the covenants post-closing with majority bondholder consent.,” said Marc Plepelits, a partner at Shearman & Sterling who advised the initial purchasers on the transaction. “They were always done under New York or UK law so the...
The rest of this article is available to subscribers only. Subscribe today for full access to this article.
Alternatively take a free trial, giving you access for 48 hours*.
If you are already a subscriber, please log in below to access the rest of this article.
*some articles may be excluded.